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Renewable energy – Energy Country Profile

Renewable Energy

Albania adopted its first National Renewable Energy Action Plan (NREAP) in January 2016 confirming the target of 38% of renewables in final energy consumption by 2020. The 38 % should be reached through the following renewable shares:

  • 25 % (small hydro power plants, wind, and photovoltaic)
  • 10 % (biomass)
  • 3 % (biofuels)

The 2018-2030 energy strategy aims to raise the share of renewables in primary consumption to 42% in 2030.

A new law on renewables was adopted in February 2017 which introduced a net metering scheme for households and small businesses, for solar and wind projects up to 500 kW (electricity injected into the grid sold at universal service price). It also introduced a competitive auction process for renewable projects over 2 MW to sign contracts for difference (CfD); demonstration projects or those below 2 MW will secure CfD without auction. In addition, the country launched three solar PV auctions in 2018 (100 MW), May 2020 (140 MW) and November 2020; the third auction was launched for a 100 MW solar PV project in Spitalle near Durrës. 

The legistlation on energy efficiency was adopted in 2015. The new law foresees an indicative energy target, energy audits, energy service and the creation of an Energy Efficiency Fund together with an Energy Efficiency Agency. However, the implementation of the law is still pending as the secondary legislation is still to be adopted.

Albania issued its second and third NEEAP in 2017, which aims for a final energy savings of 124 ktoe by 2020, including 40% in transport, 30% in buildings, 13% in services, 6% in industry, and 11%. Primary and final energy consumption targets for 2030 are 2.4 and 2.1 Mtoe. 

Last update: 03 2021